Moody's maintains positive outlook on India's credit rating amid strong economic reforms

International credit rating agency Moody's has maintained positive outlook on India and said beyond the short-term negative impact on growth, demonetisation can provide impetus to government revenues and provide some fiscal space to support growth if required. 

"We maintained a positive outlook on India’s (Baa3 positive) rating in November 2016 based on our expectation that economic and institutional reforms will support continued robust growth," the agency said in its latest report on Asia Pacific.

As per an exclusive story in Economic Times, Moody's said measures including relaxation of foreign investment restrictions, passage of the Goods and Services Tax, and advancement of a workable bankruptcy code have potential to stimulate private sector investment, which could lead to stable, balanced growth and gradually lower the government debt burden.